40 U.S.C. § 550 — Disposal of real property for certain purposes

(a) Definition.—Here, “State” includes the District of Columbia, Puerto Rico, and the United States territories and possessions. This section does not otherwise define “State.”

(b) Enforcing and changing transfer documents.
(1) General rule.—Except for personal property transferred under section 549 of this title, the official named in paragraph (2) must determine and enforce compliance with the terms, conditions, reservations, and restrictions in a document transferring property under this section. The Administrator of General Services may disapprove a proposed action within 30 days after receiving notice. The official must reform, correct, or amend the document when needed to correct it or make the transfer lawful. The official must release a term, condition, reservation, or restriction, and must convey, quitclaim, or release to the recipient (or another eligible user) any right or interest reserved to the Federal Government, if the official decides that the property no longer serves the purpose for which it was transferred, or that the release or conveyance will not prevent that purpose from being achieved. The release or deed may include terms and conditions the official considers necessary to protect or advance the Government’s interests.
(2) Named official.—The official is—
(A) the Secretary of Education, for property transferred under subsection (c) for a school, classroom, or other educational use;
(B) the Secretary of Health and Human Services, for property transferred under subsection (d) to protect public health, including research;
(C) the Secretary of the Interior, for property transferred under subsection (e) for a public park or recreation area;
(D) the Secretary of Housing and Urban Development, for property transferred under subsection (f) to provide housing or housing assistance for low-income individuals or families; and
(E) the Secretary of the Interior, for property transferred under subsection (h) for use as a historic monument for the public’s benefit.

(c) Property for schools, classrooms, or other education.
(1) Assignment.—The Administrator may, in the Administrator’s discretion and under regulations the Administrator prescribes, assign surplus real property to the Secretary of Education for disposal. This includes buildings, fixtures, and equipment on the property. The Secretary must recommend the property as needed for school, classroom, or other educational use.
(2) Sale or lease.—The Secretary may sell or lease property assigned under paragraph (1), for school, classroom, or other educational use, to a State, a State political subdivision or instrumentality, a tax-supported educational institution, or a nonprofit educational institution that has been exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986. The Administrator may disapprove the proposed transfer within 30 days after the Secretary gives notice.
(3) Setting the value.—When setting the sale or lease value, the Secretary of Education must consider any benefit the Government has received or may receive from the State, subdivision, instrumentality, or institution using the property.

(d) Property to protect public health, including research. The rules in paragraphs (1) through (3) are the same as in subsection (c), except that the Administrator may assign the surplus property to the Secretary of Health and Human Services; the needed use is protection of public health, including research; eligible recipients also include a tax-supported medical institution and a nonprofit hospital or similar institution exempt under section 501(c)(3); and the Secretary of Health and Human Services must consider benefits to the Government when setting the sale or lease value.

(e) Property for a public park or recreation area.
(1) Assignment.—The Administrator may assign surplus real property, including buildings, fixtures, and equipment on it, to the Secretary of the Interior for disposal when the Secretary recommends it for a public park or recreation area.
(2) Sale or lease.—Subject to the Administrator’s possible disapproval within 30 days after notice, the Secretary may sell or lease the property for that use to a State, a State political subdivision or instrumentality, or a municipality.
(3) Value.—The Secretary must consider any benefit to the Government from that recipient’s use when setting the sale or lease value.
(4) Deed.—The deed must—
(A) require all the property to be used and maintained for the conveyed purpose forever, and provide that, if that stops, all or part of the property may, at the Government’s option and in its existing condition, return to the Government; and
(B) may include additional terms, reservations, restrictions, and conditions the Secretary considers necessary to protect the Government’s interests.

(f) Property for low-income housing assistance.
(1) Assignment.—The Administrator may assign surplus real property, including buildings, fixtures, and equipment on it, to the Secretary of Housing and Urban Development when the Secretary recommends it to provide housing or housing assistance for low-income individuals or families.
(2) Sale or lease.—Subject to possible disapproval by the Administrator within 30 days after notice, the Secretary may sell or lease the property for that purpose to a State, a State political subdivision or instrumentality, or a nonprofit organization whose main purpose is providing that housing or assistance.
(3) Self-help housing.
(A) General rule.—The Administrator must disapprove a proposed transfer unless the Administrator decides that the property will be used to create low-income housing through construction, rehabilitation, or refurbishment of self-help housing. The terms must require that—
(i) subject to subparagraph (B), each individual or family receiving housing or assistance through the property contribute a significant amount of labor to the work; and
(ii) the resulting dwellings be quality dwellings that follow local building and safety codes and standards and be offered below prevailing market prices.
(B) Disabilities.—To meet the self-help requirement in subparagraph (A)(i), the Administrator must ensure that nonprofit recipients develop and use guidelines that consider any “disability” as defined in section 3(2) of the Americans with Disabilities Act of 1990. This section does not define “disability.”
(4) Value.
(A) General rule.—When setting the sale or lease value, the Secretary must consider and discount any benefit to the Government from the recipient’s use of the property.
(B) Discount amount.—The discount is 75 percent of the property’s market value. The Secretary may use a larger percentage if, after consulting the Administrator, the Secretary decides it is justified.

(g) National service activities.
(1) Assignment.—The Administrator may assign surplus property to the Chief Executive Officer of the Corporation for National and Community Service when the officer recommends it for national service activities.
(2) Sale, lease, or donation.—Subject to possible disapproval by the Administrator within 30 days after notice, the officer may sell, lease, or donate the property for national service activities to an entity receiving financial assistance under the National and Community Service Act of 1990.
(3) Value.—When setting a sale or lease value, the officer must consider any benefit to the Government from the recipient’s use.

(h) Property for a historic monument.
(1) Conveyance.
(A) General rule.—Without the Government receiving money, the Administrator may convey the Government’s right, title, and interest in surplus real and related personal property to a State, a State political subdivision or instrumentality, or a municipality. The Secretary of the Interior must decide that the property is suitable and desirable as a historic monument for the public’s benefit.
(B) Advisory-board recommendation.—The property may be found suitable and desirable only in conformity with a recommendation of the National Park System Advisory Board established under section 102303 of title 54. Only the part needed to preserve and properly observe the property’s historic features may be found suitable and desirable.
(2) Revenue-producing activity.
(A) General rule.—The Administrator may allow revenue-producing activities on conveyed property only if the Secretary of the Interior—
(i) decides the activities fit its historic-monument use;
(ii) approves the recipient’s plan to repair, rehabilitate, restore, and maintain it;
(iii) approves the recipient’s financing plan for that work; and
(iv) examines and approves the recipient’s accounting and financial procedures.
(B) Excess income.—The Secretary may approve a financial plan only if it says that income above repair, rehabilitation, restoration, and maintenance costs will be used only for public historic-preservation, park, or recreation purposes.
(C) Audits.—The Secretary may periodically audit the recipient’s records directly related to the property.
(3) Deed.—The deed must—
(A) require all the property to be used and maintained for historic-monument purposes forever, and provide that, if that stops, all or part may, at the Government’s option and in its existing condition, return to the Government; and
(B) may include additional terms, reservations, restrictions, and conditions the Administrator considers necessary to protect the Government’s interests.